Will SCT and VAT exemptions make vehicle purchases easier in 2025?

Hopes for a decline in vehicle prices in the Turkish automotive sector continue in 2025. However, experts point out that major reforms, such as tax reductions or improvements in economic conditions, are necessary for prices to fall. It is stated that minimum wage increases and high exchange rates will continue to put pressure on prices.

In Turkey, the automobile continues to be seen not only as a means of transportation but also as an investment tool that does not lose value. According to experts, if economic uncertainties persist, new and used vehicles will continue to be a safe haven for investors.

IS IT POSSIBLE TO BUY A VEHICLE WITHOUT SCT AND VAT IN 2025?

According to the news in Sputnik, certain conditions stand out for purchasing vehicles without Special Consumption Tax (SCT) and Value Added Tax (VAT) in Turkey in 2025. According to the new regulations, citizens who scrap their vehicles over 25 years old will be able to benefit from an SCT exemption on zero-kilometer vehicles produced in Turkey on a one-time basis.

In addition, tradesmen who will purchase commercial vehicles can benefit from SCT and VAT exemptions, provided that they renew their existing vehicles. These regulations are expected to contribute to economic balance and reduce environmental impacts.

So, what are the expectations for the automotive market for 2025? Ali Haydar Bozkurt, CEO of Toyota Turkey and Chairman of the Automotive Distributors and Mobility Association, evaluated 2024 and shared his predictions for 2025.

Starting his evaluations for 2024 by summarizing the general performance of the market, Ali Haydar Bozkurt stated that they encountered a higher tempo than expected at the beginning of the year. Emphasizing that they reached a sales volume exceeding 947 thousand units in the first 10 months, Bozkurt stated that the sector entered its most active period in November and December.

In particular, the intensity of sales of vehicles with SCT exemptions in the first three months of the year and the implementation of GSR II regulations were important factors that changed market dynamics. Stating, “The necessity of selling vehicles with the GSR I package, which were normally expected to be sold in 14 months, in a short period of 3 months, enabled brands to stimulate the market with major campaigns,” Bozkurt said that this situation was effective in making 2024 an active year.

Bozkurt stated that the need for mobility continues for both individual and corporate customers and that competition will be supported by campaigns in 2025. He added, “If there is no unexpected economic development, 2025 will also be completed with a sales volume of over 1 million units for the automotive market.”

Stating that the sector has returned to the pre-pandemic period, Bozkurt said that brands now have sufficient vehicle stock and this situation has increased competition. “Attractive campaigns and high competition will offer great advantages to consumers,” said Bozkurt, predicting that 2025 will also be completed with a market volume of over 1 million units when considering the mobility needs of individual and corporate customers.

“If there are no unexpected negative developments, the automotive sector will have a strong year in 2025,” he concluded.

Evaluating Toyota’s 2024 performance, Bozkurt stated that they expanded their hybrid product range with the new Yaris Hybrid and Yaris Cross Hybrid models. Stating that they were the clear leader in the hybrid market in 2024 with a 60 percent market share, Bozkurt emphasized that they continue to bring customers together with hybrid technology.

Expressing that they launched the new Proace City and Proace City Cargo models in the light commercial vehicle segment, Bozkurt stated that they aim to reach significant sales figures with a wider product range in this segment in 2025.

In addition, noting that Toyota’s diversity in the SUV segment has increased with the launch of the new generation Land Cruiser Prado model, Bozkurt stated that SUV sales have reached a 50 percent share in Toyota’s passenger vehicle product range. “We offer models that meet this trend in a market where SUVs are on the rise, and we aim to increase this rate even further,” he said.

Stating that as Toyota, they foresee closing 2024 with 60 thousand sales, Bozkurt noted that they appeal to more customers with their expanding product range.

In conclusion, the year 2025 is preparing to attract attention in the Turkish automotive sector with intense competition, the rise of hybrid and electric vehicles, attractive campaigns, and a sales volume of over 1 million.